tv On the Move Bloomberg September 9, 2014 3:00am-4:01am EDT
i am going to take a look at the fine print and tell you what is next for the markets. >> after weeks of speculation and product leaks it is apple day. press have got this event on this particular day, but apple is going to focus on the sleek look as well as the slick hardware. i will be back with more to expect. >> futures here in london are lower. markets opening right now. don't forget about the u.k.. you have got the open. industrial production and manufacturing in the united kingdom. is that enough to trump day to of the polling phenomenon in
scotland? more or less than a connect. you are seeing the yes vote rise in the no vote fall. get thebeginning to confidence of investors. will speakllande about industrial policy in france. keep an eye on oil. libya upping their production. volume in the u.k. was 22%. volatility rising by 22%. industrial production and many -- manufacturing hiked a little bit. .enewed sanctions we are seeing that rise at the
start of trade today. up.k targets with growing earnings per share between 10 and 15%. bucking the overall trend. alstom involved in bribery in the u.k. that story taking a little bit of the form. l'oreal said it would grow. now he is saying the growth would be between 3% and three and a half percent. that is taking the stock lower. keep an eye on that particular stock in paris. this is the overall trend.
that is undeniable. asian markets we saw a renewed. the dollar off six-year highs. the yen on six-year lows. the need for more stimulus. beat is what advisers to a have been saying. 107,ays have been saying 108. emotional roller coaster sterling is on. it is debatable. we will see how that turns out. they say you are not in a sterling crisis. notdollar 50 is unattainable. >> i am not sure where you are with vacation plans. thanks very much.
with get the insight and the chief investment officer who oversees 345 billion euros of assets. the big focus on one particular company and the u.s. it is apple. let's talk about the stock. >> where we stand at the moment is real focus on this stock new products but also growth margin. that was the big debate. wasbig strategic concern could they keep new products rolling off and could they keep margins up. what they seem to have done recently is beat off sam's son,
and that was a big concern. they seem to be bringing new products at the high and. -- high-end. is a great focus on the future in the pipeline. it all looks better than it did a year ago. i think considering they came from a very low valuation a year ago now it looks in better shape overall. >> the prospect, is that a canicular product that develop and deliver real revenue? beinitially it is going to minimal. we think they will start relatively carefully.
then we will see how they develop. if we want to move into visa and mastercard that is a big step. i think it will be interesting. >> back to the u.s., they will be a big tech company. tellingstarted investors why they should buy into the ipo. if you look at that, are they going to understand what alibaba do and want to do? >> i think they will understand it. it is not incredibly complicated. they have e-commerce, and most people understand that. i think they have the questions we want answers. on the strategy of the company. they willing to move into area wise? margin? to take off the
interest.of strategic the management structure is what it is, and that is not everybody's cup of tea. how much organic growth have they got? you have 50% penetration online in china. a lowerce is percentage. you have got some scope to grow, and then you come to the valuation. the valuation is not bad, but be absolute basis may not tempting to many people. there are a few questions we would like to have the answers to. >> we will talk politics after the break. she stays with us. here is a look at what else is coming up. apple.ll about
the story is a simple one. they come out and unexpectedly announce a $4 billion share back. the stock times higher. is the stocks. let's talk about politics. the european union approved a on russia.sanctions only to postpone it. they will hold them for a few days. a cease-fire by both sides carry on fighting. there is only one man to explain the situation. >> the european union has always said it is possible they might introduce sanctions and immediately suspend them. when you look at the way this actually happened, the fact that the sanctions were agreed on last nightnd even
there was a meeting of eu ambassadors suggest disagreement , we know that one of the countries that disagreed with the idea of the cease-fire is finland. very concerned about the prospect of counter sanctions, retaliatory action from the kremlin. finland owns 56% of sin air. 50% -- was one -- owns 56% of finnair. finland was one of the big losers when russia threaten to ban airspace. it might just be this is a case where it was fear of retaliation that had some of the eu countries saying, let's see how the cease-fire works out. >> let's talk about a cease-fire.
as soon as the cease-fire was agreed i think a more cynical is this going to last? >> it's going to last as long as the parties wanted to last. if they want to get out of it they have had ample reason over the weekend. you might say the alleged violations of the truce have been slowing in terms of violence. the ukrainian president saying they had one soldier killed yesterday. you compare that to the 20 killed on average before the truce was introduced. they are very concerned of losing for fear that could create a land bridge between russia proper and the crimea peninsula. he also jumped on the telephone with vladimir putin, another
the that at least for moment these leaders appear very focused on trying to make the cease-fire work. one advisor to the ukrainian president told me he anticipated as much as a third of ukraine to this seeded autonomous region that would be controlled by pro-russian separatist. he said they are considering fencing it off. him lucy.ing to bring listen to that. a cease-fire that might not heard. limited. yet why is that? >> it is a small part of gdp, a small part of market cap. to ampact is limited
sideshow to what is happening in markets as a whole. than apple.mportant normally you would have the impact on oil. for a number of reasons that has dissipated. had morefact you have coming on from other places in the middle east. you have not got a supply shortage currently. you have relatively weak demand. that means you are not having that leverage from russia. they need the revenue. it is an unpleasant sideshow. >> as an investor, when does lucy mcdonald start to care about what is going on in russia?
>> hardly ever. as a currency investor you might be more invested. investor looking for companies you really want for the medium-term, you don't need to invest in russia. you can generally find other companies. you don't need to worry. >> i want to talk about scotland. moreare taking a little seriously the fact they could vote for independence. >> what control -- what concerns effect onpossible europe. the eurozone is important. we have seen one we have that
lack of confidence that is a concern. specifics i think ds is better priced in. i think a month ago it wasn't priced in. inhink it is better priced for related stocks. however, i think you wouldn't want to necessarily make a trade because it is far too close to call. even if you get a no vote it is not going to be a strong no vote. i think we still need to be careful around those stocks. it is what does it mean for the u.k. and europe and for europe as a whole. that is the issue. >> if we got the get vos we have then got two years between the
u.k..ndum in the falls, when domino do you think of the u.k. exiting europe? do you wait until the vote or do you start thinking about it in between? >> we think about it. we think about it now. in my experience the markets can get quite close to something. that is enough to be valued quite a long way. >> in terms of assets, what would you be looking at? >> it means we would certainly look at sterling's impact on stocks. the stocks affected are actually a good thing. strong selling has been a problem over the last six months.
we were talking about scotland in that context. would be a focus certainly. we would have to broaden to look at euro >> the biggest concern by 2014. is it scotland? >> it is definitely what happens to u.s. rates. >> are we going to go higher? thank you very much for joining us. up, google is trying to balance the right to be forgotten with the right to know. more on that balancing act later. stay with us. ♪
>> we will have 100 97 seats. that leaves eight extra seats. we are taking some of the galley space out so there will be more legroom. the average legroom will go up 30 inches. >> what on earth is that man wearing? that was the ryanair chief executive speaking to our colleagues. boeing shares climbed higher. the biggest move higher on the dow jones industrial average off the back of the deal ryanair
just described. just to bring you up to date, u.k. prosecutors claim alstom paid 6.6 million euros in bribes over six years for transport contracts. the unit was charged for corruption in july and allegedly india, poland, and tunisia. prosecuted they could face a ban in the european union. begin as early as next month. the brand is owned by jab, which could sell its stake. to be chu has a valuation of $1 billion. facebook's valuation is the 22nd largest company in the world and toyota.on
shares have risen more than 9% since the end of to live. betting thee company will continue to capitalize on the future of mobile. another company hoping to do that is twitter. consumers can purchase directly from tweeps. twitter is partnering with a cardny to save credit information. it is the first part of a long strategy. another tech company we will talk about today is apple. apple is flirting with a record high. investors anticipate a hot new lineup of devices from tim cook, including an update to their flagship phone. we take a look at the first seven years of the iphone phenomenon. >> the origins of the iphone can be traced to the ipod. became icons.ds
sales were even bigger than the macintosh. when asked if the new consumer electronic device might be a phone, steve jobs demurred. he said telling anything would be too difficult. he said, we are not good at going through orifice, but it is a ruse. >> we are calling it iphone. >> apple sold 53 million iphones in the first year. point $5 billion in revenue. they have become seven in global mobile phone sales. after watching apple get $10 billion in revenues, samsung stepped into the fray with the galaxy.
samsung market share had outstripped apple. 550 1.3 million iphones have been sold. total revenue is huge. a global phenomenon. it was originally just sold in the u.s., but now it is in 143 countries. it is the single most popular consumer electronic device ever. two years later it was 25.4 billion dollars. the industry created around the iphone is enormous. apple will likely sell more of the new iphone in its first weekend than the first iphone sold in its first year. it is a global phenomenon and an enormously popular the vice. -- device. >> we will bring full coverage later today. that conversation
>> welcome back to "on the move ." city ofht here in the london. this is what marks a look like. the session is high. nothing to get two-sided about. we will talk about out of. the big one is, mark carney speaks political. -- nothing to get to excited about. -- we will talk about apple. >> good morning. three stocks made or lost plenty this morning. it starts with l'oreal. the ceo said the world's largest maker of makeup thinks of the
market will grow less than he thought original. largest maker of grants is up. loser -- a riser here. telecom italian may be on the receiving end of an acquisition bid. american mobile. comment --th another company, it will enter to launch a bid. couple of headlines. the european union is putting new sanctions on russia on hold for a couple of days. to assessmore times the liability of a cease-fire in ukraine. includet sanctions barring some defense and energy -- from the eu. [indiscernible]
johnsecretary of state kerry is due in the region this week to help build a coalition against islamic state. he calls the vote a major milestone. currency futures suggest the fallen againster the dollar before this month's vote on scottish independence after tumbling more than 6% this year's peak in july. the yesntum behind campaign continues. respondents say they will support independence that is up. in london and across the country, everybody is talking about apple. after weeks of speculation, it is apple day. new products are due to be launched in california later today. the ceo tim cook hopes to wow the audience. more is caroline hyde.
anticipation building. can they deliver? >> we understand even a three-story building being built outside where the speech will be delivered in california to try to show as a hardware will be slick and the software as a wall. they have whetted the appetite's -- appetites of advisors. not only tim cook abutted the head of itunes saying we have an incredible pipeline. , shruggingre excited off the worries about privacy naked photographs and we have to see what the hardware is alike. >> what is it like? what kind of devices can we expect? >> it is well leaked. and song -- samsung rushes tinkers when it is in the hands of the user.
-- waits and waits until it is perfect. they are behind the likes of sound song. it is how they integrate the software. we know the hardware. -- and they are behind the life of sound song -- they are behind the likes of samsung. it will be about the payment software. that is why you have ib can. you can do -- down the street. for trains with our phone. they have been lining up partnerships and agreements. making it in their own in terms of the payments space.
help theware that will iphone. it will help the wearables. whether it be in iwatch or we do not know what it will be called. it'll be a wearable device coming out today and that's why the fashion press has been invited. at thisaire will be particular event. it will be tailored toward women and for the home kit, health kit. the software that will integrate so not only can you count calories and count steps but also turn on your music in your home and control more devices by bluetooth. they wanted alternately mostly. -- seamlessly. we will find out who will be providing the hard screen. tot i really hope is we got be sapphire scoring, the more hard screen. --what i am having [indiscernible] i will not get my hopes up. will bring in our guest.
welcome to the show. i am looking at the stock and i see a run up of 30%. if we boughtg everything already. everything will be launched. a huge buyback. what are your thoughts? did in 2012.at we the stock that all-time highs. one of the most expensive out there. even with the run up, it is not that expensive. it is the bottom quartile of valuations. perspectivenings and cash flow perspective. it is not that expensive. all of this is priced in the today. bull was thought our going to take -- apple and no new products came. >> a bigger iphone. expect's the best we can , a 5.5 inch screen, maybe we need to lower our expectations
and surely they have to deliver more than that. 2 of the bigger scoring, bigger screens. looking at some of the coverage in 2007 when there was speculation that will get in the phone industry. you see the pictures of the devices. i'm really curious to see how it will be a run on the wearables. songsong hazard -- sound has released ang wearable. >> when you hire people from fashion, somebody buying the brand. the iphonei buying because out that made it or because it is a serious category that can deliver revenue? does not lead with revenue but design. the question is, are you going
to look at it and say how can i live without this? was thing came around it revolutionary. it is, tim cook is phenomenal. if not, we will go back and say if only steve jobs was around to make a pull it off. >> we could get a mobile payment system. how on earth can you keep mobile credit cards safe? question notge only for our full but everybody. we have made a range of investments in securities. it is hard to defend. uni full-time professions who just monitor. job for software. i am not so sure if apple has figured it out. i am more excited about the payments and apple going into services. if you look at the revenue per user on the software side, it does offer five dollars down to
two dollars. a range of new software's and services to the user and that is something that apple could pull off on the payment side that nobody but amazon. selfies one no naked the phone. i want to send it to google. they begin a spree of meetings across europe with how to cooperate with a court ruling. what is google strategy? >> of their strategy is to tell their side of the story. publicityassive stopped are for them to frame the debate and listen to some of the critiques and complaints from users of google in response to the european court of the writer to be forgotten back in may. we have the first of the town hall. it will be image red. spain is the country that locked
the complete -- logged the complaint. -- it's will be in madrid. then, brussels. the criticism is for the town for google to put in there and saw him on the scale of the right to know. the danger is that these town halls will be out of google's control and they cannot control the narrative. while google said it is very easy to be forgotten. you have to fill out a form. they said we will balance after the rights with the public to know in the right to distribute. a quick chart of share. in germany, a lot of criticism about the monopoly. word's critics are used. look at marketshare facade germany is not the highest. you have to get all the way down to the states, united states two guesses and 7%.
that is remarkable that penetration is so high. gets to 67%.tes >> where are we with the antitrust case? >> at google and the eu's were getting close to an agreement and the potential agreement with some of the complainants and there were more complaints and more criticisms and we heard this over the weekend. exclusive interview bloomberg tv hat with the commission of european competition who is in charge. it will cite they are back to the drawing board. the antitrust case is not any closer. like we are back to the drawing board. >> you listen to some of it. reminiscent. , they did the business for the people behind. the pressure.
isn't this just noise around google? is -- iftitrust stuff anything, if we learn anything in the tech industry, it moved so rapidly. aremarket leaders of today not necessarily going to be the market the leaders of tomorrow. the biggest thing is what the european commission is doing. alan's the right of individuals to be forgotten and google has to respond to that. they are taking a forward leaning position. at the regulator and we will see. they were very please of what was going on after the town hall and engaging with the countries. >> what does the impact? just a sideshow? >> social responsibility and social search.
[indiscernible] be borderline criminals. we will see. you haveget that big, to think about societal things versus making money. >> we have to leave it there. i will put on the spot on our bull. expectations, stop rising or fall? >> i think the stock will go up. maybe i am too bullish. thank you very much. >> coming up, the new normal a u.k. spending. a chief executive joins us. walletspening their let's than before. stay with us.
welcome to the show. we talk about the recession and the u.k. and the consumer and recovery. webe it stayed with us and are being more careful with what is in our wallet. is that what the data is telling room>> we are seeing great for optimism because of the continued focal's -- focus on fiscal responsibility. consumers took control. a drop in their spending quite sharply and started paying off their debt. what we have seen is credit and debit card spending, credit card balances and the losses are at historic lows. last year, we saw a bit of easing up of the pressure and spending for the first time start outpacing the rate of inflation. this year as we go in, one would expect with consumer confidence and other great indicators we
would've seen spending start to increase. the resolve of the u.k. consumer is really kicking in. year over year growth almost relative to last year. >> a what are we spending and where are we spending? we were talking about more public transport usage. do you see that playing out in the whole range of industry? >> absolutely. not a just and in the numbers. we see inflation coming down at a faster pace and we are not seeing consumers turn around and spend the money. it suggests they are pocketed it. their habits change. far fewer visits to petrol habitss. supermarket have changed. going to the supermarket more often but with smaller basket sizes. what do they are doing is only buying what they need at the time and shifting and moving to different stores for different things looking for value.
inwhen we look at 2014 and the recovery right now, some toht call it a boom compared 2007 where we were maxing out credit limits. our things very different now? >> very different. a new normal. consumers have taken control. >> let's talk about something else happening. apple and potentially launching a new payment system. smartphone,k at a is that a vessel for cards or a direct to the business model? >> we will find out more about what cowboy is doing later. it seems like they are getting on the bandwagon. there are putting a chip in the phone which is the same as what you see in your credit or debit card or wearable tech devices where you could hook it up. it is very much in partnership with the banks for the payments. at consumer needs to really hook it up and connect.
security? >> the bottom line is always security. the chip is very secure just as secure as when you are tapping your phone on site. it is a much bigger story. what we are seeing is a very strong trend that consumers want at the things they wear and carry every day to do more for them including payment. is that the death of the barclays card as we know it? absolutely not. people still need an consumers very strongly tell us when it comes to the payment and financial details, they wanted to be with a trusted financial provider. even apple relies on a system and financial realm. .> valerie thank you for joining us at this morning. the pulse is coming off. guy johnson joins us was the give me a choice, scotland or
apple? >> neither. theill be talking about budget. where does germany fit on the idea of more qe. more from the ecb or spending a little bit more. surroundings.heir that will be interesting. we are likely to get news and from the dutch on the investigation into the downing 17.h we'll be watching that and the headlines. we will go to much red -- madrid. google testifying and the right to be forgotten case. we'll be talking about that as well. about going to be talking apple. plenty of gas talking about the application for startups and how we you take advantage of what will get from out the. we will be talking about the payment story.
-- of what we will get from apple. there areone and plenty of other stories and we will talk about what is happening there. apple is certainly front and center. a busy of couple of hours for plenty of live events. in the context around them. >> thank you. im glad in you finish with you are right. will be back in about two minutes time. stay with us. ♪
>> welcome back to "on the move." abb shares are up. they had a $4 billion buyback. the chief executive is trying to make it more profitable. they also set a new long term targets. america movil plans to enter talks with a joint takeover bid. americanteam up to buy telecom italian. paymentss testing a where users could bidirectionally from twitter. security is the big question
mark. engaging twitter users to help broaden the revenue sources. move, let'sp on the bring in stocks and where equity markets are. pretty flat across most of the eurozone. the dax is down. ftse 100 is down by 0.2%. sterling under pressure. that is against the pound. camp on the the yes scottish independence vote. data in 34 minutes time. andproduction for the u.k. governor carney speaks as well. so much to talk about. want to talk markets, join me on twitter. that is it for "on the move." pulse" is next with guy johnson. ♪
>> what is on the a list? apple gears up. at a record high in what could go wrong? forget about it. holds his a road as it the first of seven public minutes to debate the right to bring forgotten. eric schmidt is in madrid. the big guns. scottish and separation. the former u.k. prime minister outlined the plan to give scots more power.